HomeBusiness DigestZesa Keen on Partnerships –– Rafemoyo

Zesa Keen on Partnerships –– Rafemoyo

ZIMBABWE Electricity Supply Authority (Zesa) said it was eager to enter into private-public partnerships to boost power- generation to mitigate the effects of load shedding.

Speaking to businessdigest yesterday, Zesa chief executive, Engineer Ben Rafemoyo said the Munyati and Bulawayo power station were not working and entering into partnerships with local or foreign partners would assist both parties.
“Only the Harare power station is functioning. I cannot say the same for Munyati and Bulawayo. For Zimbabwe, (partnerships) will increase capacity to generate electricity,” Rafemoyo said.
He said Zesa had entered into one such arrangement with an iron and steel smelting company for the refurbishment of Hwange Power Station but the deal failed to go through as the company was hit by the financial crisis.
Rafemoyo said that: “If a company comes on board to partner us by advancing us cash for the work needed, Zesa guarantees uninterrupted supply while discounting the bills from the advanced loan”.
Rafemoyo said if properly constituted, the partnerships could lead to improved power generation, adding that this was one of the quickest solutions to power shortages than letting Zesa go at it alone.
In 2007 Zimbabwe entered into a deal with Nampower of Namibia following an advancement of US$40 million for the refurbishment of two units at Hwange Power Station.
A delegation from the Development Bank of Southern Africa (DBSA) was said to be currently negotiating with Zesa Holdings and the government on a US$80 million loan.
Rafemoyo said he was “positive” the loan would be secured, although there were still “some issues” to discuss.
The DBSA board representatives are set to meet financial technocrats from Zesa Holdings and government to discuss the finer details of the loan.
Zesa is currently facing serious cashflow problems, limiting its capacity to pay for coal from Hwange Colliery Company, prompting the latter to withhold supplies.
With limited coal supplies, Zesa is failing to generate power at consistent levels. Zesa has often resorted to indiscriminate rolling power cuts to domestic and industrial consumers. — Staff Writer.

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